Bitcoin is treading sideways in its range as traders continue to hold out for bigger catalysts that could provide directional clues. Price is hitting resistance around $3,750 and support at $3,600.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Price is also below both moving averages as additional confirmation that selling pressure is in play.
However, the gap between the moving averages has narrowed to signal weakening bearish momentum. A bullish crossover might be possible and this could pave the way for an upside range breakout. If that happens, Bitcoin could be in for a climb that’s the same height as the chart formation.
RSI appears to be slowly moving south, so Bitcoin price could follow suit while sellers are in control. The oscillator has a bit of ground to cover before hitting oversold levels, which means that this bearish momentum could stay on. Stochastic, on the other hand, is already bottoming out at the oversold region to indicate that sellers are tired and might be willing to let buyers take over.
Bitcoin has struggled to recover after that sharp selloff on the failure to break past key resistance levels early in the year. This suggests that the optimism and bullish momentum has fizzled while traders continue to wait for catalysts that could sustain the climb.
Most of these expectations are fixed on institutional investment, which has yet to show more momentum. It doesn’t help that much of the coverage in the past few days has to do with the uncertainty surrounding the Ethereum upgrade and the recent delay, leading traders to worry that similar issues could arise for Bitcoin and its peers down the line.
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